KIEV, July 02. /ITAR-TASS/. The National Bank of Ukraine continues to calculate the value of the Russian natural gas using the price of $268.5 per 1,000 cubic metres.

Russia’s Gazprom raised the price of gas for Ukraine to $485 per 1,000 cubic metres from April. Official Kiev disagreed with it and has been negotiating a reduction since then. The talks have so far brought no result despite several trilateral meetings between Russia, Ukraine and the European Union.

“The price of gas imported from Russia for Naftogaz of Ukraine, starting from April 2014, is based on the actual price for the first quarter of 2014 ($268.5 per 1,000 cubic metres) due to the absence of official information,” the National Bank said.

The European Commission is hoping to resume trilateral gas talks with Russia and Ukraine before the end of July, EU Energy Commissioner Guenther Oettinger said after a meeting with Ukrainian Energy and Coal Industry Minister Yuriy Prodan last week.

Oettinger did not say whether Ukraine was ready to start paying the debt for the gas consumed as Gazprom had expected it to do over the previous six rounds of talks from May 2 to May 16 when they ended in disarray.

Prodan said, however, that Ukraine was “ready to discuss at the talks only the European Commission’s interim package solution concerning the price and debt settlement”.

He reiterated Kiev’s position on the debt: “We will pay it right away as soon as the price is agreed.” “If no agreement is reached, the final decision will be made by the Stockholm court of arbitration,” he added.

Russian Energy Minister Alexander Novak said gas talks with Ukraine might resume only after Naftogaz of Ukraine has paid the debt for November and December 2013.

If gas is a political weapon, then this is a political weapon in the hands of the Russian government. If gas is a commodity, as it is in the rest of the world, we trade on the basis of a contract, not on the basis of whether Russia likes the Ukrainian government or not Arseniy YatsenyukParliament-appointed Prime Minister“There will be no talks before that,” Novak said at the World Petroleum Congress on June 19.

Novak said Gazprom had not received any payments from Naftogaz of Ukraine since June 16 when the Russian company stopped gas supply to Ukraine in the absence of prepayment for June.

Naftogaz of Ukraine should pay $1.454 billion for gas supplies in November and December 2013 and show progress in paying for April and May, Miller said.

He said parliament-appointed Prime Minister Arseniy Yatsenyuk had upset the last round of gas talks with his statement that Ukraine would not pay more than $268 per 1,000 cubic metres of gas.

The European Union found Yatsenyuk’s statement inopportune, he added.

Yatsenyuk also said his government was insisting on changes to the effective gas contract. “If gas is a political weapon, then this is a political weapon in the hands of the Russian government. If gas is a commodity, as it is in the rest of the world, we trade on the basis of a contract, not on the basis of whether Russia likes the Ukrainian government or not,” he said.

The current price of Russian gas for Ukraine is $485 per 1,000 cubic metres. Ukraine is insisting on the price of $268.5.

Minister Novak suggested returning to the 2010 agreement under the current contract effective until 2019, which will set the price at $385 per 1,000 cubic metres.

The new price has been in effect since June 1. “The overall debt for the supplies in April and May is $2.3 billion”, he said.

Miller said that Ukraine had taken 3.5 billion cubic metres of gas in May and 2.7 billion cubic metres in April.

Initially, the debt for the first two months of the second quarter was put at $3 billion based on the price of $485.5 per 1,000 cubic metres.

Under the contract between Naftogaz of Ukraine and Gazprom, the price of gas supplied to Ukraine is determined by the formula that is pegged to the price of oil. “This formula is used everywhere in the world for pipeline gas supplies. Therefore there are no grounds to discuss the price today and especially unilaterally offer the first quarter price of $268 per 1,000 cubic metres as the Ukrainian authorities are doing,” Novak said.

However, Prodan said the gas price of $385 per 1,000 cubic metres offered by Russia to Ukraine was not the best one on the market.

Prodan said an acceptable gas price for Ukraine could be within the range of $268.5 to $385.

He believes that the only way to settle the gas dispute with Russia is to take the matter to the Stockholm court of arbitration.